Oil prices rise ahead of US inventory data

AFP, SINGAPORE: Oil prices rose in Asia yesterday, rebounding from sharp losses sparked by a report that Saudi Arabia was close to completing an oilfield expansion.
But analysts said the gains, partly prompted by a slightly weaker dollar, would likely be short-lived due to lingering worries about a global supply glut. Traders are also nervously awaiting the release of US stockpiles data on Wednesday.
At around 0630 GMT US benchmark West Texas Intermediate (WTI) for delivery in June was up 10 cents, or 0.23 per cent, at $42.74 and Brent crude for June rose eight cents, or 0.18 per cent, to $44.56.
Both contracts dived Monday after Bloomberg News said Saudi state oil company Aramco would complete the expansion of its Shaybah oilfield by the end of May, allowing the world's largest exporter to maintain total capacity at 12 million barrels a day.
Those losses broke a week of gains on the back of upbeat data from China, the world's biggest energy user, and speculation that talks to limit production could be restarted. But Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP: "Although we are seeing some positive moves in our trading session today, they have come on very light volumes."

Oil prices rise ahead of US inventory data

AFP, SINGAPORE: Oil prices rose in Asia yesterday, rebounding from sharp losses sparked by a report that Saudi Arabia was close to completing an oilfield expansion. But analysts said the gains, partly prompted by a slightly weaker dollar, would likely be short-lived due to lingering worries about a global supply glut. Traders are also nervously awaiting the release of US stockpiles data on Wednesday. At around 0630 GMT US benchmark West Texas Intermediate (WTI) for delivery in June was up 10 cents, or 0.23 per cent, at $42.74 and Brent crude for June rose eight cents, or 0.18 per cent, to $44.56. Both contracts dived Monday after Bloomberg News said Saudi state oil company Aramco would complete the expansion of its Shaybah oilfield by the end of May, allowing the worlds largest exporter to maintain total capacity at 12 million barrels a day. Those losses broke a week of gains on the back of upbeat data from China, the worlds biggest energy user, and speculation that talks to limit production could be restarted. But Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP: Although we are seeing some positive moves in our trading session today, they have come on very light volumes.